- - CALCURATOR HISSAGE MY INGTRUCTOR FULL SCREEN PR?NTIA VERSION BACK Multiple C

Question

- - CALCURATOR HISSAGE MY INGTRUCTOR FULL SCREEN PR?NTIA VERSION BACK Multiple Choice Question 98 Brandon Consulting Company is headquartered in Atlanta and has branch offices in Nashville and Birmingham. Brandon uses an activity- based costing system. The Atlanta office ha its costs for Administration and Legal allocated to the two branch offices. Brandon has provided the following information: Activity Cost Poo Cost Driver Administration % of time devoted to branch Costs_ $700,000 Legal Hours spent on legal research $138,000 % of time devoted to branch Hours spend on legal research Nashville Birmingham 80% 18,000 6,000 20% How much of Atlanta's cost will be allocated to Birmingham? o $174,500 $167,600 $209,500 None of these answer choices are correct LINK TO TEXT

Explanation / Answer

The correct option is A. 174500

Administration cost= 700000*20%= 140000$

Legel expenses= ((138000÷(18000Hr+6000Hr))*6000 Hours

34500$

Total cost will be 140000+34500= 174500$

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